economic slowdown
Ifo business climate deteriorates – “The economy lacks strength”
A setback was expected after other sentiment indicators had recently been weak. The decline in the Ifo index is now greater than economists expected.
The mood in the German economy deteriorated again in November after a recovery in the previous month. The Ifo business climate fell by 0.8 points to 85.7 points, as the Ifo Institute in Munich announced. This means that the most important German economic barometer is once again approaching its lowest level since the beginning of the year, which was reached in September at 85.4 points.
Analysts had expected a setback after other sentiment indicators had recently been weak. On average, they only expected the Ifo index to fall to 86.0 points. The approximately 9,000 companies surveyed by the Ifo Institute were primarily less satisfied with their current situation. Expectations for future business have only deteriorated slightly.
“The German economy lacks strength,” commented Ifo President Clemens Fuest. In the services sector, corporate sentiment has deteriorated significantly. The mood in industrial companies has also deteriorated with declining orders.
dpa
Source: Stern
